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A company issued 10,000, 10% debentures of 100 each on 1.4.2017 to be matured on...

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Accounting

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A company issued 10,000, 10% debentures of 100 each on 1.4.2017 to be matured on 1.4.2022. The company wants to know the current cost of its existing debt and the market price of the debentures is 80. Compute the cost of existing debentures assuming 35% tax rate

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